Fujitsu Limited announced today that it has revised its consolidated earnings projections for fiscal 2008, previously announced on October 29, 2008.
1. Revised Consolidated Earnings Projections for FY 2008 (April 1, 2008 – March 31, 2009)
|Net Sales||Operating Income||Net Income|
|Previous Projection (A)||5,050.0||150.0||60.0|
|Current Projection (B)||4,700.0||50.0||-20.0|
|Results for FY 2007||5,330.8||204.9||48.1|
2. Reasons for Revisions to Earnings Projections
The projection for full-year net sales has been lowered by 350.0 billion yen to 4,700.0 billion yen. The revised projection takes into account the deteriorating market conditions and intensified competition in the PC, mobile phone, hard disk drive (HDD), logic LSI device, and electronic component markets. In addition, since the beginning of the third quarter, the yen has continued to appreciate in value. Therefore, the projected average exchange rates for the US dollar, euro, British pound and other currencies for the second half of the fiscal year have been revised, resulting in a projected 100.0-billion-yen decline in net sales.
The projection for full-year operating income has been lowered by 100.0 billion yen to 50.0 billion yen. The projection was revised due to the decline in sales of PCs, mobile phones, HDDs, logic LSI devices, and electronic components, along with the impact of the yen appreciation.
The company now projects a full-year net loss of 20.0 billion yen. Non-operating losses of 25.0 billion are expected from valuation losses on investment securities and losses related to facilities and equipment. This estimate includes expected losses of approximately 10.0 billion yen incurred from the consolidation of logic LSI device production lines in the fourth quarter.
Reference: Expected impact on earnings projections due to change in currency exchange rate assumption
|Net Sales||Operating Income||Net Income|
|Comparison with October forecast
(Portion of above expected from exchange rate impact )
Average currency exchange rate forecast for the fourth quarter of fiscal 2008, with previous October forecasts in parentheses:
$1=90 yen (100 yen); €1=120 yen (125 yen); £1=120 yen (160 yen)
* These materials may contain forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors:
- General economic and market conditions in key markets (particularly in Japan, North America, Europe, and Asia, including China)
- Rapid changes in the high-technology market (particularly semiconductors, PCs, mobile phones, etc.)
- Fluctuations in exchange rates or interest rates
- Fluctuations in capital markets
- Intensifying price competition
- Changes in market positioning due to competition in R&D
- Changes in the environment for the procurement of parts and components
- Changes in competitive relationships relating to collaborations, alliances and technical provisions
- Potential emergence of unprofitable projects
- Changes in accounting policies
Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.3 trillion yen (US$53 billion) for the fiscal year ended March 31, 2008. For more information, please see: www.fujitsu.com.
All other company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.
Date: 30 January, 2009
Company: Fujitsu Limited, , , , ,
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